The Accounting Cycle

Question 1

What is the accounting cycle/process?

Answer 1

The accounting cycle is the sequential steps of the accounting system.

Question 2

What are the steps in the accounting cycle?

Answer 2

1. Collect and analyze source documents
2. Record transactions in Books of Original/Prime Entry
3. Post to the Ledger
4. Prepare a Trial Balance
5. Prepare financial statements: Income Statement, SoFP

Question 3

Where are information that are to be recorded in the journals taken from?

Answer 3

Source Documents

Question 4

List 5 source documents

Answer 4

Invoice
Credit note
Debit note
Remittance advice
Invoice
Purchase order
Purchase requisition
Delivery note
Receipt
Statement of account